Nvidia hit with 51 lawsuits alleging price fixing
According to a Dow Jones Newswires report, Nvidia has revealed it is facing no fewer than 51 civil complaints alleging price fixing and anti-competitive agreements "among other things." According to the lawsuits, agreements were struck between Nvidia and ATI—now AMD—in order to keep prices in the graphics card market artificially inflated. However, Nvidia asserts the allegations are "without merit" and that it plans to "vigorously" defend itself.
This isn't an entirely new trend. Last December, AMD and Nvidia were both hit with a class-action lawsuit that also referred to a price-fixing conspiracy. One of the complaints quoted an American Technology Research analyst as saying, "As a consumer, I have noticed that the price points of video cards have always been pretty equal. The first mover comes out with a product that is $500 and the follower comes out with a product that is $500. They tend to not be in price wars." The U.S. Department of Justice also issued subpoenas against both AMD and Nvidia as part of an antitrust investigation into the graphics processor market last November. Thanks to The Inquirer for the tip.